Sun Palace Albir changes hands: 216 rooms and €2.7m in renovations

In L’Albir, between Altea and Benidorm, a four-storey white building slopes down towards the sea along a sloping street. This is the Sun Palace Albir & Spa, a 216-room four-star hotel overlooking the Costa Blanca. It has just changed hands, with its operations handed over to Pierre & Vacances under a firm fifteen-year lease.

A four-star hotel between Altea and Benidorm

The property is located in the heart of L’Albir, within the municipality of Alfaz del Pi in the province of Alicante. Its 216 rooms are air-conditioned and all feature a balcony, complete with marble finishes inherited from its era. The address embraces the classic seaside holiday vibe, offering a restaurant, bar, rooftop bar, outdoor pool, wellness area and seminar rooms.

The resort stays active year-round, which is rare for this coastline, attracting families and couples alike, both Spanish and international. It is this consistent footfall that drives the asset’s value, far more than the hotel’s standing itself.

A fifteen-year lease for Pierre & Vacances

The transaction separates the real estate from the operations. SCPI Atream Hôtels is buying the freehold, Pierre & Vacances is taking over the business, and the two are bound by a firm fifteen-year lease. The French group now operates six properties on the coast between Valencia and Alicante.

“We sought to combine asset quality, partner quality, intelligent structuring and value-creation potential,” explains Grégory Soppelsa, executive president and co-founder of Atream. The model is the one the SCPI has applied for a decade: buying well-located properties, entrusting them to an established operator, and securing them with a long-term lease.

€2.7 million to upgrade the hotel

A €2.7 million renovation programme accompanies the takeover. Spread across 216 rooms, this equates to just over €12,000 per key · enough to give the property a serious refresh without completely redoing the hotel. This is the right scale for upgrading rooms and common areas, rather than moving upmarket.

The schedule for the works has not been announced, nor have any potential closures. The hotel continues to take bookings.

Why Spain, and why now

This is Atream Hôtels’ first Spanish address and its sixth country following France, Germany, Belgium, the Netherlands and Italy. The SCPI now holds 24 hotel assets with a market capitalization close to €330 million, following two recent acquisitions in Berlin and Verona.

The choice of country is explained by a single figure: with €135 billion in international tourism revenue in 2025, Spain is Europe’s leading market. “This transaction marks a new milestone for the SCPI,” summarises Mathilde Krieger, deputy managing director of savings. The acquisition was carried out with Colliers, CMS and CBRE.

What this means for travellers

In the short term, very little: the same hotel, the same rooms, the same beach just a few minutes away. In the medium term, the property will join Pierre & Vacances’ distribution network, bringing with it a French clientele and holiday packages.

The renovation work will certainly be visible. A budget of €12,000 per room does not transform a seaside four-star hotel into a luxury address, but it is enough to update what ages fastest in this type of property: bathrooms, bedding and common areas.

Our perspective

Above all, this transaction says something about the market. Investors today are buying Spanish seaside four-star hotels not for their prestige, but for their consistency · an occupancy rate that holds up eleven months out of twelve is worth more than a striking facade full for three months.

That leaves the question the press release doesn’t address: what happens to a hotel when its walls and operations belong to two separate entities, one expecting stable rent, the other a volume of stays. The answer is usually found in day-to-day maintenance, not in press releases. We will go and see for ourselves.

Photo credits · Sun Palace Albir & Spa Hotel, © Pierre & Vacances.